Adjusted EBITDA for 1Q17 was $46.4 mill, compared to $85 mill in the same period of 2016. TCE revenues( for 1Q17 were $84.1 mill, compared to $124.7 mill in 1Q16.
Cash on hand was $101.1 mill as of 31st March, 2017.
“We are pleased with International Seaways’ first full quarter as an independent public company and our progress implementing the company’s strategy,” said Lois Zabrocky, International Seaways’ president and CEO. “During the first quarter, our sizeable and diverse fleet of crude and product tankers performed well, enabling the company to generate solid cash flow in a volatile tanker market. With our contracted cash flows, low breakeven levels and spot market upside, we remain well positioned to both successfully operate in the current tanker cycle and take advantage of a market recovery.”
“We are guided by a disciplined capital allocation strategy and are pleased with the Board’s authorization of a share repurchase programme, which we intend to act on opportunistically. Complementing this approach, we believe there are compelling opportunities to grow and renew our fleet. Our strong balance sheet provides International Seaways the ability to capitalise on attractive asset values as the company seeks to further enhance and modernize its quality fleet and increase its earnings power,” Zabrocky said.
Operating income for 1Q17 was $27 mill, compared to $64.7 mill for 1Q16. The decrease reflects the decline in TCE revenues.
TCE revenues for the crude tankers segment were $56 mill for the quarter, compared to $87.4 mill in 1Q16. This decrease was primarily due to significantly lower average blended rates in the VLCC, Aframax and Panamax sectors, with spot rates declining to $38,800, $15,700, and $14,400 per day, respectively and fewer revenue days in these sectors, resulting from an increase in drydock and repair days. Shipping revenues for this segment were $59.9 mill for the quarter, compared to $91.1 mill in 1Q16.
INSW said that TCE revenues for the product carriers segment were $28.1 mill for 1Q17, compared to $37.3 mill in 1Q16. This decrease was primarily due to a decline in average daily blended rates earned by the MR, LR1 and LR2 fleets, with spot rates declining to $12,600, $17,400 and $17,700 per day, respectively.
The decline in the MR, LR1 and LR2 rates accounted for $8.5 mill of the decline in TCE revenues. Shipping revenues for this segment were $28.9 mill for the quarter, compared to $37.6 mill in the first quarter 2016.